Relevant Taxes and Fees When Buying a Property in Bulgaria

Buying and owning a property in Bulgaria is associated with paying relevant taxes just like when buying a property in the UK or any other country. When buying a property in Bulgaria, buyers needs to be aware that they are obliged to pay taxes in relation to both the acquisition of the property (property transfer tax) and the continual ownership of the property (annual property tax, rubbish tax) as well as tax on any income derived from this property (income tax).

With signing the Notary deed – the title deed for ownership of the property - the buyer becomes the full owner of the property and assumes all related rights and obligations. By signing of the Preliminary contract the buyer has only the right to receive the ownership over the property when all the installments have been transferred to the seller, but the seller remain the owner of the property till signing of the Notary deed for transferring the ownership.

1. Upon signing this ownership document the buyer is obliged to pay property transfer tax to the amount of 2 % to 4% of the value of the property to be purchased depending on the policy of each municipality (usually the tax rate is 2,5 %).

2. There is no VAT on land transfer deals. Upon signing the Notary deed the buyer pays Land registry fee of 0.1% of the price of the property the total amount for which is roughly 1% of the price of the property.

3. Notary fee, calculated as per the Notary Fees Tariff on the certified material interest (in case of difference between the tax evaluation and the sale price - on the higher amount) + 20% VAT.